Suppose that the price of a share of stock in ADT Co. is currently trading at $30/share. Consider building a portfolio with the following option positions:

a. Buy a put option with a strike price of $43 for a $2.5 premium.

b. Sell two put options each with a strike price of $17 for a $1 premium each.

Which of the following is correct?

Select one:

a. The maximum profit of this portfolio is 25.50

b. The maximum loss of this portfolio is unlimited

c. All statements are incorrect.

d. The maximum loss of this portfolio is $0.

e. The maximum profit of this portfolio is $26.00.